Tuesday, 28 May 2024
New Taxes In Budget 2021 Through IMF

Budget in front but Pakistan and IMF will discuss taxes next week

Pakistan and the International Monetary Fund (IMF) are working to eliminate their differences over new taxation measures. The government’s willing to increase sales tax rate on fertilizer to 10% and charge 17% tax on import of crude oil to generate Rs115 billion.

Interest income

There is also a proposal to tax interest income under normal tax regime, instead of charging a maximum rate of 15% that is at the lower end.

IMF & Govt Talks

The talks between the both will continue next week. Although only five days left in presentation of the budget for fiscal year 2021-22. According to media reports, if the issues could not be settled down at the level of Finance Minister Shaukat Tarin and IMF’s Mission Chief Ernesto Rigo, then Prime Minister Imran Khan may talk to IMF Managing Director Christalina Georgieva next week. Federal Information Minister Fawad Chaudhry said that “no telephonic conversation was planned today (Saturday)” between Imran Khan and Georgieva.

See also  FBR to reintroduce track and trace system for tobacco products by the end of June 2021

Difference between IMF & Govt

According to media reports, the key difference between the two sides was the taxation measures. That Pakistan has to take to achieve next fiscal year’s tax target of Rs5.829 trillion. Without additional taxation measures, Pakistan will reach Rs5.3 trillion and the IMF wants that the rest of the difference should be filled with additional revenue measures.

Govt Point

However, the government is of the view that the IMF should leave this to Pakistan. Whether the govt will achieve target through taxation measures or administrative measures.

tax accounting services top tax consultants lahore pakistan

Budget | Finance Act 2021 | IMF | New Taxes | Discussion |

Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: